SEC’s Binance Lawsuit Sends Bitcoin and Altcoins Tumbling

• Bitcoin and several altcoins took a beating on reports that the SEC filed a suit against Binance in U.S. district court.
• The S&P 500 Index (SPX) broke and closed above the overhead resistance of 4,200 on May 26, completing the bullish ascending triangle pattern.
• The U.S. Dollar Index (DXY) rebounded off the 20-day EMA (103) on June 2, indicating that the sentiment has turned positive and bulls are buying the dips.

Price Analysis

Bitcoin and altcoins witnessed a sharp sell-off on news that United States Securities and Exchange Commission (SEC) filed a suit against Binance in U.S. district court for unregistered securities operations. This lawsuit could delay the recovery in Bitcoin BTC $26,154 and most major altcoins as traders may prefer to stay on sidelines until some clarity emerges. Another upcoming event which could keep investors at bay is Federal Reserve’s meeting on June 14th.

Glassnode Data

Glassnode data shows that largest cohort of Bitcoin whales owning minimum 10,000 bitcoins have been in accumulation spree for past few days whereas all other major cohorts have been in distribution phase.

S&P500 Price Analysis

The S&P 500 Index (SPX) broke out from an ascending triangle pattern by closing over 4200 resistance level on May 26th . Bears tried to trap aggressive bulls between May 30th to 31st however bulls aggressively bought dip at 20 day Exponential Moving Average (EMA )at 4183 leading to resumption of up move . Minor resistance exists at 4325 where bears will try to stall rally while uptrend line support needs to be watched for any signs of weakness . A break below 50 day Simple Moving Average( SMA )at 4128 will suggest bull trap with possibility of dip towards uptrend line .

U.S Dollar Index Price Analysis

The US Dollar index bounced back from 20 day EMA at 103 suggesting positive sentiment amongst buyers who are buying dips . Bulls will now try to push price above 10470 resistance while any failure will bring bulls back into play near 103 support level .

Conclusion

In short , price analysis suggests possibility of further upward movement in SPX with DXY bouncing back from key support levels while Glassnode data shows accumulation amongst large whale groups suggesting potential upside continuation once current negative sentiment around SEC Lawsuit fades away .

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